Veena Malik appeared nude on the cover of FHM magazine with an ‘ISI’ tattoo on her arm, but has been forced to deny it after it sparked outrage among conservatives in Pakistan - both for her nudity and the reference to the country’s intelligence agency.

The controversial photo appears on the December issue of the magazine.

The image, which was revealed on FHM India’s website, Facebook page and Twitter account simultaneously, shows her nude with her arms and one leg positioned to cover her breasts and pubic area.

On her arm are emblazoned the initials ''ISI'' - the acronym for Pakistan''s feared Inter-Services Intelligence agency - with the tag line, ‘hand in the end of the world too?’

But Malik has denied posing for the lads’ mag and insists that the photo is morphed.

“I have never posed nude. I have never done anything like that ever,” the Daily Mail quoted her as saying.

“My manager and legal team is looking into the matter. We will take legal action against them,” she added.

FHM India’s editor, Kabeer Sharma, said that nothing had been doctored, and that the magazine could prove the photo’s authenticity.

“We have video footage of the shoot as well as emails from Veena about how she’s looking forward to the cover,” BBC quoted him as saying.

Sharma said the reference to Pakistani intelligence was meant to be light-hearted, saying: “In India we joke about this... if anything goes wrong... we say the ISI must be behind this.”